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Impact of Information Concerning the Popularity of Candidates on Loss-Averse Voters’ Abstention

Author

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  • Kohei Daido

    (Kwansei Gakuin University)

  • Tomoya Tajika

    (Hokusei Gakuen University)

Abstract

In this study, we build a two-candidate election model, in which voters are loss averse and face uncertainty about whether their preferred candidate is supported by a majority. Even without costs for voting, abstention may occur when voters have expectations-based reference-dependent preferences, as in Kőszegi and Rabin (Q J Econ 121:1133–1165, 2006; Am Econ Rev 97:1047–1073, https://doi.org/10.1257/aer.97.4.1047 , 2007). We show that loss aversion leads to the equilibrium wherein abstention occurs in a large election, and the abstention rate of voters who prefer the minority candidate is higher than that of voters who prefer the majority candidate.

Suggested Citation

  • Kohei Daido & Tomoya Tajika, 2022. "Impact of Information Concerning the Popularity of Candidates on Loss-Averse Voters’ Abstention," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(1), pages 41-51, May.
    • Handle: RePEc:spr:etbull:v:10:y:2022:i:1:d:10.1007_s40505-021-00214-y
    DOI: 10.1007/s40505-021-00214-y
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    References listed on IDEAS

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    Cited by:

    1. Leontiou, Anastasia & Manalis, Georgios & Xefteris, Dimitrios, 2023. "Bandwagons in costly elections: The role of loss aversion," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 471-490.

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    More about this item

    Keywords

    Abstention; Expectations-based reference-dependent preferences; Loss aversion; Signal; Voting;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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